Starbucks quietly raises Southern California prices up to 30 cents

FILE - In this July 11, 2013 file photo, a man drinks a Starbucks beverage in New York

With McDonald’s serving $2 McCafe drink specials as part of a revamped coffee menu, what does Starbucks do in return?

Raise prices.

The Seattle giant has quietly raised prices from 10-30 cents in various U.S. markets including Southern California. The adjustments were made in early September to everything from drip coffee to espresso beverages.

“In Southern California, customers will experience increases of 10 to 20 cents on select sizes of brewed coffee, and 10 to 30 cents on select espresso beverages,” the company said in a statement. “We expect the average customer ticket to increase by about 0.5% as a result of these beverage adjustments, however, 90 percent of beverage prices have not changed.”

Some customers are experiencing sticker shock. A recent survey of cafes in Orange and Santa Ana show the following prices: $3.45 for tall latte; $1.95 for a tall brewed coffee, and $3.95 for a tall mocha.

A Starbucks spokeswoman did not provide an exact reason for the price hike after the Register asked if it was due to rising labor costs in California. The state’s minimum wage is increasing every year, capping at $15 an hour in 2022. In 2018, it will go up to $11 an hour for companies with 26 or more employees.

“Pricing is continually evaluated on a product-by-product and market-by-market basis in our stores in order to balance business needs while continuing to provide value to our loyal customer,” Starbucks said in a statement. “Beverage and food prices vary by location and customers can find pricing posted in each location and through our mobile app.”

The company said customers can find “meaningful” value in other ways, including participating in Starbucks Rewards. “Our approach to value properly balances the experience we provide customers with our need to effectively run our business.”

Company cafes are raising prices as McDonald’s challenges Starbucks and Dunkin’ Donuts with a refreshed McCafe menu. The enhancements at 600 restaurants in Southern California include the launch of three new espresso drinks: cappuccino, Americano, and iced caramel macchiato.

Restaurants also have been outfitted with higher quality espresso machines, which produce a creamier and thicker milk foam. To promote the McCafe line, McDonald’s is selling 12-ounce hot or cold beverages for $2 for a limited time.